Russian Economy Grows 4.7% in 2021, Quickest Pace Since 2008

The economy of the world’s top energy exporter grew the most in more than a decade in 2021, rebounding from a pandemic-related recession the year before as oil prices jumped and consumer spending grew.

Russian gross domestic product rose 4.7% last year, the fastest since 2008, according to the Federal Statistics Service.

That was above the 4.5% forecast in a Bloomberg survey. Government stimulus as well as the global economic recovery and rising oil prices last year lifted growth. In 2020, the economy had contracted 2.7% amid Covid-19 restrictions.

Moscow has taken steps to buffer itself against the economic blow that sanctions could impose. When Russia annexed Crimea in 2014, the European Union, US and other countries hit Moscow with punitive economic measures.

Russian individuals and organizations have since been sanctioned for interfering in overseas elections, cyberattacks and other actions. Now, Russia has amassed tens of thousands of Russian troops along Ukraine’s borders in what some fear could be a prelude to a full-scale invasion.

In response, the US is threatening additional sanctions, including cutting off Russian banks’ access to the dollar and employing novel export controls.